While you may be aware of some of the current cases that are trending in news involving insurance salesmen who have committed insurance fraud and the amount of jail time they are now facing for their illegal acts, denied insurance claim attorneys in Los Angeles, California ask you this: Do you know what insurance fraud is exactly, and are you cognizant of the many ways it can harm an individual who purchases a policy through an illegitimate company? As insurance premiums continue to spike through the roof, citizens become frantic, resulting in them purchasing an insurance policy through a privately owned company who claims they get their premium down a bit, or can make the overall process of filing an insurance claim painless and simple.

Although there are a record number of companies out there that can do just this for consumers, being aware that insurance fraud does exist can help reduce the chance of receiving an insurance claim denial notice in the mail, as well as the stress associated with it.

To begin, denied insurance claim legal representatives have pulled together their top resources to provide you with and it stems from the National Association of Insurance Commissions (NAIC). According to the NAIC, insurance fraud has been recognized “when an insurance company, agent, adjuster, or consumer commits a deliberate deception in order to obtain an illegitimate gain.” It is stated that more cases of insurance fraud occur through automobile policies, and while it encompasses all types of insurance, you must be on lookout for suspicious or questionable activity when you decide to purchase a policy.

Insurance claim dispute lawyers in Los Angeles also would like you to take notice to how these fraudulent companies manage to take hold of individual's money and coax them into believing what they have to offer is valid.

Fictitious Companies- Agents who claim their company, which appears to have everything a real insurance company should, provides an individual will documents displaying the policies they offer and the amounts they are priced at. They then have you pay in for your monthly premium. Little do you know, your money is actually going into their pockets and not filed to prove you have a legitimate auto or health insurance plan purchased.

Legitimate companies, false policies- While the company may in fact be real, they do not possess a license to sell insurance.

Real agent, real company– Beware that some insurance agents out there who work for well-known companies could be taking your precious premium funds and using them for their own benefit.

Insurance fraud is a serious matter as it accounts for millions of dollars spent by U.S. citizens who are simply trying to protect themselves and their family in the event the unfortunate arises and they need financial coverage. The last thing you need is to have a claim denied when you need the protection the most.

Los Angeles, California denied insurance benefits lawyers urge you to be on the lookout for any activity that could be debatable, and research the companies you are entrusting before rushing and having your money pocketed rather than used for your protected.